Mundell said: “I have completed visits to all Scottish local authorities and believe transferring this power is the correct thing to do. The UK Government believe in taking a pragmatic approach to devolution and we believe in a UK that gives Scotland the best of both worlds.”

Sturgeon last night welcomed the move, which will have to be approved by both the Westminster and Holyrood parliaments.

She said: “We had already set aside the money to be able to help every household in Scotland affected by the bedroom tax.

“Once we have the powers, we will be able to use it and provide vital assistance to thousands of hard-pressed Scots.

“I am delighted that in future anyone who has been affected by this unfair policy will receive the help they need and I would encourage them to contact their local authority to apply for assistance through the DHP scheme.

One of our front pages showing the impact of the Bedroom Tax on Scots.

“We will never turn our back on people in need, and I am pleased to finally be able to get on and help people.

“This decision has taken too long. At last Westminster have seen sense and we will work to ensure the law is changed as quickly as possible.”

The Tories had dragged their heels over allowing the change – with the decision being passed all the way up to Downing Street.

Introduced in April 2013, the bedroom tax cut the housing benefit paid to council or housing association tenants judged to have a “spare” bedroom.

The Daily Record led the fight against the hated policy with a series of hard-hitting exclusives on how it victimised the vulnerable and actually cost more money.

The policy was seized upon by pro-independence campaigners as an example of why Scotland should sever links with the rest of the UK.

But yesterday’s announcement means Scots will no longer have to suffer from the iniquitous tax.

Labour’s Jackie Baillie said: “The Scottish and UK governments have so far been more interested in taking each other on, rather than come to a solution which works.

“Now that we finally have an agreed means of effectively ending the impact of the bedroom tax in Scotland, the Scottish Government must give councils and housing associations clear and unequivocal assurances over DHP payments.”

Another Daily Record front page on the Bedroom Tax

Bedroom tax campaigners were last night celebrating the end of the policy. Shelter Scotland director Graeme Brown said: “This is great news for the 70,000 households affected by the tax in Scotland and we congratulate the Scottish Government for making it happen.”

Citizens Advice Scotland policy manager Keith Dryburgh said: “It’s now important to ensure that clear, consistent and accessible processes are in place to ensure that everyone affected by the bedroom tax is able to get support.”

"The Daily Record understood right from the start that the bedroom tax had the potential to cause misery among families in Scotland.

"This was proved right by the countless stories of hardship caused by the cruel policy.

"Your campaign cut through the political point-scoring and brought to life the real stories of those who were being hit hardest.

"It forced governments at every level to listen – while without pressure from the Daily Record, they might have been allowed to look the other way.

"First, you forced the SNP Government to face up to their responsibilities and find the money to protect the vulnerable from the bedroom tax. That is why we created a Scottish Parliament and the Daily Record made them do the right thing.

"Then you kept up the pressure until the UK Government changed the law to let us banish the bedroom tax in Scotland.

"Even Iain Duncan Smith had to listen to the powerful case made by this campaign. As a result, Scottish families worried about keeping their homes can breathe a sigh of relief tonight.

"This result brings to an end an extraordinary campaign that united political parties, charities and organisations all over Scotland and has made a real difference to vulnerable Scots.